Trump orders critical mineral review as China faces 245% tariff

This development comes as President Donald J. Trump signed a new Executive Order launching an investigation into the national security risks posed by U.S. reliance on imported processed critical minerals and their derivative products.

The Executive Order instructs the Secretary of Commerce to initiate a Section 232 investigation under the Trade Expansion Act of 1962 to determine whether these imports threaten America’s security and industrial resilience.

“The United States remains heavily dependent on foreign sources, particularly adversarial nations, for these essential materials,” the White House said in its statement. “Foreign producers have engaged in price manipulation, overcapacity, and arbitrary export restrictions, using their supply chain dominance as a tool for geopolitical and economic leverage over the United States.”

Critical minerals—such as rare earth elements, gallium, germanium, and antimony—are vital components in defense and high-tech industries. They are used in applications ranging from missile guidance systems and radar to advanced optics and secure communications.

The investigation will examine vulnerabilities in U.S. supply chains, the economic effects of foreign market distortions, and recommend potential trade remedies. If the Secretary of Commerce finds that imports of these materials impair national security, President Trump could impose new tariffs under Section 232. “Any resulting tariff rate imposed under Section 232 would take the place of the current reciprocal tariff rate,” the White House clarified, referring to Trump’s April 2 order.

The White House noted that just this week, China suspended exports of six heavy rare earth metals and rare earth magnets—materials essential to industries such as aerospace, semiconductors, and automotive manufacturing. These moves, the Administration argues, underline the urgency of reducing foreign dependency.

“Processed critical minerals and their derivative products are key building blocks of our defense industrial base,” the statement reads. “President Trump recognizes that an overreliance on foreign critical minerals… could jeopardize U.S. defense capabilities, infrastructure development, and technological innovation.”

The Executive Order is part of Trump’s broader “America First Trade Policy.” Since taking office, the President has imposed strategic tariffs, closed trade loopholes, and launched similar investigations into the impacts of imports like copper, timber, and aluminum on national security.

Earlier, it was reported that U.S. President Donald J. Trump reiterated his controversial proposal to transfer U.S. citizens convicted of violent crimes to prisons in El Salvador.